San Diego's redev bill: $6.5 billion

Cedar Gateway, located at Sixth Avenue and Cedar Street downtown, is one of the latest affordable housing project to open under the city's former redevelopment program.

/ Corporation for Supportive Housing

Cedar Gateway, located at Sixth Avenue and Cedar Street downtown, is one of the latest affordable housing project to open under the city's former redevelopment program.

Cedar Gateway, located at Sixth Avenue and Cedar Street downtown, is one of the latest affordable housing project to open under the city's former redevelopment program. (/ Corporation for Supportive Housing)

San Diego’s wind down of its redevelopment program passed two more milestones Tuesday as the City Council approved a list of $6.5 billion in leftover project obligations and ratified the final two members of the oversight board that will review the list.

“I wish if we’d had a way, we’d still have redevelopment,” said Councilman Todd Gloria. "But we didn’t and we don’t.”

The wind down was prompted by state legislation passed last year that dissolved about 400 redevelopment agencies statewide, including 17 in San Diego County. It was seen as a way to shift redevelopment funds back to city, county and school district treasuries and help close a state budget gap.

But the program’s end leaves much unfinished business that the San Diego council members and their counterparts across the state have to resolve -- namely, what to do with ongoing bond payments, debt obligations and numerous consulting contracts that remain in force.

Tuesday’s main job was to complete three lists, totaling more than 600 pages that itemize all the obligations, and to send them to county and state officials for review and possible challenge.

For 2012, the city list totals nearly $6.5 billion for projects extending more than 30 years and $300.2 million in payments due this year.

Two examples of spending that might be vetoed by the state are the Petco Park and San Diego Convention Center bond payments totaling $13.8 million. They were shifted from the city to the redevelopment debit sheet after the apparent deadline for making such changes.

Mayoral aide David Graham said the state will have three days to object and 10 days to cite specific challenges, but there is no deadline for resolving any disputes.

“That could be three months, six months, it could be a year,” commented Councilman Kevin Faulconer. “Of course, we’re talking about neighborhoods, projects, jobs, money -- so many things that are just going to be in flux for a while.”

Council members focused on the state of affordable housing funding that is one of many redevelopment priorities left in the lurch by the new state law. Previous redevelopment law set aside 20 percent in funds for housing, but that source is now closed.

Deputy City Attorney Kevin Reisch said the unspent amount totals about $65 million, but unless a new law is passed, that amount would no longer be promised for housing as it goes the city, county, schools and other agencies.

Catherine Rodman, director of Affordable Housing Advocates, asked that still other housing obligations remain. The council did not act on her proposal to add potentially billions of dollars to the list of future obligations but wished her well if she proceeds with a lawsuit to enforce such promises.

Before dealing with the project list, the council approved former Councilman Michael Zucchet and Mark Nelson, a vice president with Sempra Energy, to fill the final two spots on the seven-member San Diego Oversight Board, as called for in the state post-redevelopment law.

The board, tentatively scheduled to meet April 19 or 20, is to review the debt obligations and oversee liquidation of land, buildings and other redevelopment assets.

Also serving on the board are Supervisor Ron Roberts, former mayoral candidate Peter Q. Davis, general manager of the San Diego County Water Authority and business managers of the San Diego Unified School District and San Diego Community College District.